Compliance Certificate for PUB Operators

The circular is issued to ensure road transport safety by linking labor standards compliance with franchise regulation.
It requires strengthened cooperation and coordination between the LTFRB, thru the DOTC, and the Department of Labor and Employment (DOLE) to enforce labor standards and road safety policies.
It is grounded on a DOLE rapid survey of bus drivers/conductors and operators on working conditions and compensation schemes in bus transport.
It relies on validated findings from focus group discussions involving bus operators, drivers, government regulating agencies, and experts from academe in engineering and traffic psychology.

The circular applies to all Public Utility Bus (PUB) Operators.
It requires PUB operators to secure and submit a Labor Standards Compliance Certificate from DOLE.
The required compensation scheme covers PUB drivers and conductors.
The mandated labor-related entitlements and protections apply to all PUB drivers and conductors.
The circular’s right-to-self-organization rules apply to drivers and conductors regardless of contracts or arrangements made to obtain the certificate.

PUB operators must secure a Labor Standards Compliance Certificate from DOLE.
The certificate must indicate compliance with relevant legislations on wages, labor standards, terms and conditions of employment, and mandatory benefits under Philippine Labor Laws that may now or in the future be provided.
The certificate requirement exists to ensure compliance with established employment standards and the Board’s road safety policies.
PUB operators must submit the required certificates to the Board by July 30, 2012.

The compensation scheme set or approved by DOLE must cover PUB drivers and conductors.
The compensation scheme must adopt a part-fixed-part-performance based compensation system.
The fixed component must at no time be lower than the applicable minimum wage in the region.
The performance-based component must be based on the net income of the operator or bus company and employee safety records, including:
- involvement in road accidents; and
- commission on traffic violations; and
- observance of the elementary courtesies of the road.
All PUB drivers and conductors are entitled to mandatory compensation other than the base compensation, including overtime, night shift differential, rest day, holiday, birthday, and service incentive leave pays.

The number of working hours and rest periods of PUB drivers and conductors must be determined by considering existing conditions, peculiarities, and requirements of the transport industry.
All PUB drivers and conductors must be entitled to retirement benefits.
All PUB drivers and conductors must receive mandatory social security benefits through SSS, Philhealth, and Pag-ibig as specified by law.
These benefits are required in addition to mandatory compensation such as overtime and service incentive leave pays.

The right of PUB drivers and conductors to organize themselves to advance their interests and welfare must be encouraged.
This right must not be abridged or diminished by any agreement or contract entered into to comply with the issuance or to obtain the Labor Standards Compliance Certificate.
Nothing in the circular precludes PUB operators and drivers/conductors from entering into collective bargaining agreements granting more rights, privileges, and benefits.
Company policies and practices and collective bargaining agreements existing on the circular’s effectivity that grant more rights, privileges, and benefits to drivers and conductors must continue and must not be diminished by virtue of the circular or any subsequent policies or agreements.
Exercise of the right to self-organization must not adversely affect public safety and convenience.

PUB operators must secure and submit the required Labor Standards Compliance Certificates to the Board by July 30, 2012.
Failure to secure and submit the certificates by July 30, 2012 is a ground for the immediate cancellation or revocation of the operator’s franchises/CPCs.
After the deadline, no application for new CPCs or renewal of existing CPCs is granted by the Board without the required certificates.

The LTFRB implements the circular through cooperation and coordination with DOLE, with the LTFRB, thru the DOTC, strengthening coordination with DOLE for strict enforcement.
The circular requires filing three (3) copies with the UP Law Center under Presidential Memorandum Circular No. 11 dated 9 October 1992.
The circular is adopted on January 04, 2012, and is signed by the LTFRB Chairman and Board Members, and attested by the Executive Director.